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July 2011 | Adam Leach
and standardising IT services could save businesses up to 40 per cent on their
overall IT costs, a report claims.
to A Clean Slate, published this
month by Compass Management Consulting, if companies
adopt modern IT strategies, such as cloud computing, they can pay for the
amount of IT services they actually use, as opposed to the amount they think
they might need.
Tuppen, UK president at Compass Management Consulting, said: “Many buyers of IT
services are consistently over-estimating the unique level of their IT
requirements. This leads to over-specified and over-configured IT
infrastructure, which costs 40 per cent or more than the equivalent bundle of
standard services.” This figure has been drawn from benchmarking work carried
out by the organisation.
argues that by over-specifying IT requirements in tenders, companies are
limiting the ability of service providers to make savings by combining the
buying power of all their clients to purchase standard services.
admits all clients need an element of customisation, but feels this accounts
for just 10 per cent of the overall contract, leaving the potential for the
majority of services to be standardised. “For those able to manage the
transition to standard services, the prize is a step change reduction in costs
of 40 per cent or more.”
report also explains that new technology has enabled IT contractors to charge
through a utility-based model - where customers pay a rate per CPU (computer
processing unit) minute. This compares with the more traditional model where
companies paid per server, regardless of how much of the server was being used.
as previously reported in SM, there are a number of potential risks
associated with moving to cloud computing.
Victoria Rolton, associate, commercial at law firm Stevens and Bolton, advised
examining both the “level of reliance placed on the provider” and the “level of
service that can be guaranteed”.